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Texas Real Estate Principles 1 questions & correct answers.
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Texas Real Estate Principles 1 questions& correct answers.
Brokerage ANS -The aspect of real estate that pertains to the overseeing the needs of the parties and
completing a transaction.
Appraisal ANS -The business of providing a professional opinion of the value of real property. Lenders
rely on these professional reports to make sound lending decisions. Buyers rely on these reports when
negotiating the purchase of a property. Sellers use this as a useful guide when pricing a property for
resale.
Mortgage Lending ANS -The business of providing money to individuals or corporations for the
conditional transfer or pledge of real estate as security for the payment of a debt.
Property Management ANS -the management of residential and commercial properties on behalf of the
investor-owner of the property. These people are generally responsible for the day-to-day operations of
the property, maintenance, and tenant relations. In retail centers or office buildings, these people are
sometimes responsible for leasing the property. Sometimes the brokerage firm may be responsible for
leasing a property.
Apartment Locator ANS -These people work for firms that specialize in locating units for tenants in
multifamily complexes. They should be familiar with amenities of all complexes in the market area. They
generally get paid fees for referrals.
Home Inspection ANS -A thorough inspection by a professional that evaluates the structural and
mechanical condition of a property. A satisfactory home inspection is often included as a contingency by
the purchaser.
Real Estate Development ANS -most often involves the acquisition of land for development into
residential subdivisions, retail centers, and other commercial uses.
Petroleum Landmen ANS -individuals with a real estate background who are employed oil and gas
companies. A petroleum landman may be employed to do title work to determine mineral ownership
and might negotiate oil and gas leases with mineral owners.
, Physical Characteristics of Land ANS -1- Indestructibility or durability: Refers to the fact that outside
forces cannot destroy land. It remains no matter what happens to the land. Land will always be there as
permanent.
2- Immobility: refers that land cannot be moved.
3- Nonhomogeneity: refers to the fact that no two parcels of land are the same. Even two identical-
looking lots in a subdivision at least differ in their position on the earth. Each parcel of land is unique.
Economic Characteristics of Land ANS -1- Scarcity: originates from the theory of supply/demand. When
there is a shortage of something that individuals want, the price goes up. The scarcity will increase the
value of these lots. An example of land in cities upholds higher demand, making it more valuable than
land in suburban or rural areas.
2- Modification: the fact that value is affected by man-made changes to the land.
3- Fixity: refers to the fact that land, and additions to land, like buildings, take long periods to pay for
themselves. Fixity also refers to the fact that land cannot be moved, but fixed at a location
4- Situs: refers to the location of the property or land from an economic, not geographic viewpoint.
There are preferences people have for specific characteristics of property, and the fact that location
dominates those preferences. Both natural and man-made factors will have an impact on preferences.
Climate, views, access to natural recreation, as well as schools, job opportunities, and transportation,
will all be important. Situs may change over time as society changes, and different lifestyles prevail.
Supply and Demand ANS -the primary determinants of real estate values. When demand is high and
supply is low, prices in the marketplace go up. Prices decline when supply is high and demand is low.
There is a delay called "lag time" involved in real estate development and the long time that it takes to
complete a transaction.
Factors Restricting Supply ANS -Land Costs, Construction, Taxation, Economics, Land government
building codes and zoning ordinances
Factors affecting Real Estate Demand ANS -- Growth in employment: primary driver of demand. As
subdivisions grow, commercial development follows.
- Transportation: have a direct effect on value depending how transportation is
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